Compute and Interpret Probabilities Using the Empirical Method
-In 1999

question 173

Multiple Choice

Compute and Interpret Probabilities Using the Empirical Method
-In 1999 the stock market took big swings up and down. A survey of 983 adult investors asked how often they tracked their portfolio. The table shows the investor responses. What is the probability that an adult investor tracks his or her portfolio daily Express your answer as a simplified fraction and as a decimal rounded to three decimal places. $\begin{array}{l|l}\hline \text { How frequently? } & \text { Response } \\\hline \text { Daily } & 240 \\\hline \text { Weekly } & 262 \\\hline \text { Monthly } & 281 \\\hline \text { Couple times a year } & 149 \\\hline \text { Don't track } & 51\end{array}$

• A) \(\frac { 240 } { 983 } ; 0.244\)
• B) \(\frac { 262 } { 983 } ; 0.267\)
• C) \(\frac { 281 } { 983 } ; 0.286\)
• D) \(\frac { 149 } { 983 } ; 0.152\) The chart below shows the percentage of people in a questionnaire who bought or leased the listed car models and were very satisfied with the experience. \[\begin{array} { l l }
• \text { Model A } & 81 \% \\
• \text { Model B } & 79 \% \\
• \text { Model C } & 73 \% \\
• \text { Model D } & 61 \% \\
• \text { Model E } & 59 \% \\
• \text { Model F } & 57 \%
• \end{array}\]

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Definitions:

Complaints Department

A dedicated sector within a company responsible for handling customer complaints and resolving issues related to products or services.

Relevant Range

The range of activity or volume over which the assumptions about fixed and variable cost behavior are valid.

Fixed Costs

Costs that do not change with the level of output or sales in the short term, such as rent, salaries, and insurance.

Cost Behaviour

Cost behavior is the manner in which a cost changes as the related activity level or volume changes, typically classified into fixed, variable, and mixed costs.